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UK car output down 1% in October

By Dave Leggett | 24 November 2016

Car output in the UK is turning down as domestic demand slows

Car output in the UK is turning down as domestic demand slows

UK car manufacturing dipped 1% in October as domestic demand fell, according to data issued by the SMMT.

Overall car output was down 1% to 151,795 units, although exports rose for the  15th consecutive month, with 122,765 cars built for overseas markets, up 1.7%. on last year. October saw a 10.9% decline in production for the UK domestic market.

Despite the October decline, car production in the year so far is up to a 17-year record of 1,444,248, a gain of 9.2% on the same period last year.

Mike Hawes, SMMT Chief Executive, highlighted the export-led strength of the UK car manufacturing sector. He said: "October's figures underline the export-led nature of the industry, with eight out of 10 cars built for overseas customers. Despite model changes which have ended the consistent growth pattern of the past year or so, we are still on track for a record number of exports."

Hawes also stressed the importance of tariff-free trade to keep the UK auto industry competitive. "It is crucial that British-built cars remain attractive to international buyers and exports are not subject to additional tariffs, costs and other barriers to successful trade," he said. "It is also essential government ensures there is economic stability and a competitive business environment to ensure we continue to attract the global investment that is behind this performance."

UK car manufacturing volumes - October 2016
Car manufacturingSep-15Sep-16% Change YTD-15YTD-16% Change
Total153,283151,795-1.0%1,322,7511,444,2489.2%
Home3256429030-10.9%3105403208413.3%
Export120,719122,7651.7%1,012,2111,123,40711.0%
% export78.8%80.9%76.5%77.8%